The universe is not a closed system. It is in a dynamic state of expansion that is moving away from thermodynamic equilibrium faster than entropic processes can keep up. The maximum possible entropy is increasing much faster than the actual increase in entropy. The difference between the maximum possible entropy and the actual entropy is potential information, as shown by Harvard cosmologist David Layzer in the 1970's.

Creation of information structures means that in parts of the universe the local entropy is actually going down. Creation of a low entropy system is always accompanied by radiation of entropy away from the local structures to distant parts of the universe, into the night sky for example.